In this whitepaper, CBRE looks at the impact of the Covid-19 pandemic on the EMEA real estate industry and how the net drag on European GDP growth should be limited, conditional on a temporary disruption to global supply chains. However, recent developments, such as the cancellation of major trade shows as well as travel restrictions, present an increased short-term downside risk.
The real estate consultant argues that the most exposed countries to supply chain disruption are Germany, France, Italy and Spain, while highly exposed sectors are those linked to motor vehicles, machinery and chemicals.
Looking at travel restrictions, CBRE says that the fear of exposure to COVID-19 will primarily impact the hotel and retail sectors, while real estate yields may be marginally impacted in the near term, the long term outlook remains positive.
As for investment volumes, the consultant says that while they will be negatively affected, there are growing calls for additional interest rate cuts which could further support the low yield environment.
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